Innovation, exports and productivity: learning and self-selection in Chile

Author

Abstract

Both exports and innovation (in particular, research and development) are key factors for
the growth of firms and economies, but there has been little study of their combined
impact on them, especially in developing countries. This article uses plant-level data from
Chile to examine the relationship between productivity, R&D expenditure, and exports.
We find that firms that invest in R&D are considerably more likely to export, but the
reverse is not true. Even though exporting does not stimulate investment in R&D, both
exports and R&D have a joint effect on improving productivity. These results allow us to
recover the private return to “learning by exporting” across different sectors.